Q1 2020 Earnings Call
[music].
Good day, ladies and gentlemen, and welcome to Electric course first quarter 2020 earnings conference call and webcast.
Certainly at this time all participants are in listen only mode. Later, we'll conduct a question answer session and instructions will follow at that time.
If anyone should car operator assistance during the conference. Please press star zero from your telephone keypad.
So as a reminder, this conference call is being recorded.
At this time, let's turn the conference over to your host Hans fit some of lifestyle advisors. Please go ahead Sir.
Thank you operator, thank you all for participating in today's call.
Joining me are Dan Goldberger, Chief Executive Officer, and Brian Posner, Chief Financial Officer, Dr., Peter starts Electric course, Chief Medical Officer will be available for Q1 day.
Earlier today electric were released results for the quarter ended March 31st 20 Twond.
The press releases are available on the company's website.
Before we begin I'd like to remind you that management will make statements. During this call that include forward looking statements within the meeting at the Federal Securities laws, which are made pursuant to the safe Harbor provisions or the private Securities Litigation Reform Act 1995.
Any statements contained in this call that are not statements of historical facts should be deemed to be forward looking statements.
All forward looking statements, including without limitation, our examination of operating trends and our future financial expectations are based upon the company's current estimates in various assumptions.
These statements involve material risks and uncertainties that could cause actual results or events to differ materially from those anticipated or implied by these forward looking statements.
Accordingly, you should not place undue reliance on these statements worry list and description of the risks and uncertainties associated with the company's business. Please see the company's filings with the Securities and Exchange Commission.
Electric core disclaims any intention or obligation, except as required by law to update or revise any financial projections or forward looking statements, whether because of new information future events or otherwise.
This conference call contains time sensitive information that is accurate only adds up to live broadcast today may 14th Twentytwenty.
And with that I'll turn the call over just Dan.
Thank you Hans Hello, everyone and thanks for joining us today.
I'm going to begin with an operational update before turning the call over to Brian to review our financial results.
You'll recall that electric core is in the early stages of commercialization of our proprietary gamma core therapy for headache patients.
Before getting into the specifics however, I want to lead with an update on cobot 19, and both the challenges and opportunities and we are experiencing as a result at the ongoing.
Goes without saying that the continued health and safety of our employees and external constituents remains at the utmost importance.
Electric or carnley qualifies as an essential business under New Jersey State guidelines.
Our operations remain active.
We serve patients were managing cluster headache in migraine conditions committed.
Ensuring that these vulnerable individuals have access to our noninvasive Vegas nerve stimulation or and BNS gamut core therapy to treat their headache pain.
The company has responded to the crisis by developing and deploying a multifaceted said operational and financial initiatives designed to minimize disruption to our normal business activities and preserve its ability to execute our long term growth.
[music].
To protect the safety health and wellbeing of employees customers suppliers and communities. We are following federal state and local guidelines to ensure safety in all facilities.
Alluding increased frequency of cleaning and disinfecting physical dispensing practices acquiring most nox reduction related team members to work remotely where possible business travel restrictions cancellation of events and limitations on visit or access to our facilities.
The company's manufacturing in shipping products on schedule and he's managing its inventory and supply chain to minimize disruption.
Well the pandemic has caused unprecedented disruptions in business activities across the globe.
We're doing everything possible to continue to execute on our growth clients, including as I'll discuss in more detail in a moment.
Continued traction in sales channels that are currently producing revenue, notably the the veterans administration and United Kingdom.
At the same time opportunities are emerging that we believe may allow us to leverage our proprietary and BNS therapy to assist patients suffering from Simpson's brought on by the virus.
We previously announced that we have submitted an emergency use authorization application or you weight to the F.D.A. that if approved would permit the use of gamma course therapy to treat respiratory issues and cope with 19 patients for the duration of the emergency.
The way Leverages, our prior studies at the end BNS, another respiratory indications, including the treatment or prevention of symptoms of reactive airway disease.
Which includes asthma bronchoconstriction exercise sunday's Bronco spasm and C.L.P.D. in adults.
We're currently CE Mark approval to market Gamma core in the European Union for those disorders.
This together with preclinical work in past pilot studies that we have conducted good support our hypothesis that end BNS may be beneficial to cope with 19 patients.
In Spain, Dr. Carlos tornado of the hospital clinical under that scenario. The Lance you had started enrolling in investigator initiated trial I cheat.
Gamma Cor and Coa 19 patients called Savior study for assessing Vegas nerve stimulation in cobot 19 respiratory symptoms.
This is a randomized open label study that is targeting 90 hospitalized patients with a confirmed diagnosis of or suspected presumed to be cobot 19.
The primary endpoint is the need for mechanical ventilation.
Secondary endpoints include supplemental oxygen requirements mortality delay onset of ventilation and cytokine levels.
To date five patients have been enrolled.
Figure to is the first formal study examining and be in best as a treatment for cobot 19 cents. It's in the United States has been initiated by Dr., Terry Chandler Allegheny General Hospital flagship hospital of the Allegheny Health network in Pittsburgh.
This study, which is expected to enroll its first patient shortly is planned to recruit 60 subjects until.
And these two studies the investigators are hoping to see that had been asked kind of put the condition of their patients with cobot 19.
Through either improved breathing or blunting, the cytokine storm that is leading to the worsening of cobot maintaining patients.
Cytokine and use of supplemental oxygen will also be measured.
[noise] recruitment for these studies is likely to takes several months it the number of subject in hospital with Kogut fluctuate based on the location and current level look spread in that environment.
We're also in discussions with several other highly regarded healthcare institutions here in the United States to launch similar studies.
Importantly, the results of these investigator initiated studies at favorable may potentially lead to an important new indication for our technology.
Final comments on Cobot 19, we recently announced that a paper entitled use of Noninvasive Vegas nerve stimulation to treat respiratory symptoms associated with cobot 19.
The radical hypothesis and early clinical experience.
Been published in a peer reviewed journal Neuromodulation technology at the normal interface.
Papers available via open access.
Turning now to our operating results by the end of the first quarter more than 2850 American physicians have written at least one gamma core prescription up from 2735 at the ended the fourth quarter 2019.
This metric continues to demonstrate physicians growing awareness and comfort with the efficacy and safety of Canaccord therapy.
During the first quarter of 2020, we had 20% sequential growth in paid months of therapy rising to 2633 from 2195 in the fourth quarter of 2019.
Total revenue for the first quarter 2020.
$734000 as compared to $675000 in the fourth quarter 2019.
Total revenue for the first quarter 2020 within guidance range of $700000 just $750000 that we provided in our April 17th uptick.
Consistent with prior quarters revenue growth was driven primarily by our continued focus on two specific opportunities, where we are reliably getting paid.
First the federal supply dual eligible any copies Veterans administration Department of Defense and Indian Health service.
And second the United Kingdoms National Health service.
Beginning with the federal supply schedule or FSS recall that FSS encompasses approximately 10 million covered lives. Some 400000 of whom saw the a health care providers for headache in 2018.
Last year, we redeployed significant sales resources to focus on this important channel and we continue to see positive growth in our key metrics as a result.
64 Veterans administration and Department of Defense military treatment facilities purchased EMCORE products during the first quarter 2020 as compared to 54 during the fourth quarter 2019.
Also during the first quarter of 2020, the company shipped 1084 paid months of therapy to D.A. and de facilities up 31% from 829 during the fourth quarter 2019.
Broken paid months of therapy led to a 20% sequential increase in revenue from the V.A. Indio D to $454000 in the first quarter or 2020 $378000 in the fourth quarter 2019.
We were on a solid sequential growth trajectory before the pandemic, but our access to physicians and their access to patients has been severely impaired since mid March.
Importantly, we continue to sell into new facilities, including the bellwether facility Walter Reed Medical Center subsequent to the ended the quarter.
Through April 2020 in the first week of May paid months of therapy are relatively flat compared to the first quarter.
We shipped 374 months of therapy Egydio deviate facilities in April 2020, compared to an average of 361 per month from January through March.
That's despite the fact that the Kobin 19 pandemic hasn't paired our ability to travel and our ability to gain access to prescribing physicians.
Okay and de facilities.
We started shipping gamma core directly to patients earlier this year.
Enables V.A. based physicians to provide their patients at totally virtual experience hosting a tele health Council prescribing gamma core delivering the therapy directly to the patient at home, who subsequently train on our web portal.
We believe that our virtual engagement can be a competitive advantage over injected therapies, which require an in person consultation with health care professionals.
We're encouraged by our current performance against a very challenging business environment. In recent days, we've seen a few hopeful signs that certain VA hospitals are planning to host in person meetings with our field sales staff and are starting to see patients in clinic.
Regarding the United Kingdom, We previously reported that National Institute for Health and care Excellence in its final guidance recommended to use again, a core for the acute and for the treatment of cluster headache in adult patients across the National Health service.
Additionally, the NHS syndicated to is that it is again extending the previously announced innovation technology payment program.
That program, which was first extended through April 2020 has now been extended through September 20, <unk> and makes gamma core eligible for the new Med Tech funding mandate mechanism, which could lead to long term sustainable reimbursement of gamma core.
We view these developments is important additional validation of the benefits of and BNS therapy in general and game of course, specifically.
During the first quarter 2020 total revenue attributed to outside the U.S. decreased.
The $277000 from $294000 in the fourth quarter 2019.
Decrease in revenues largely due to the timing of revenue recognition and currency exchange fluctuations.
Paid much of therapy outside the U.S. and the first quarter 2020 actually increased to 1008 from 961 in the fourth quarter 2019.
Not surprisingly the impact of the Cobot 19 pandemic in the United Kingdom, that's put pressure on new patient starts and that could affect our ability to grow revenue from the United Kingdom channel and the remainder of this year.
Turning now to our U.S. commercial activities.
In the pharmacy benefit management in commercial pay your channels. Our distribution partners report continued slow growth in paid months of therapy.
Spirit and sequential growth in first quarter and that trend appears to have continued into April 2020.
This cadence is notable because late last year, we reallocated sales resources away from the commercial Chad.
Too early to conclude that the commercial channel has turned the corner, but at a recent announcement that we gained access to millions of B S. I lives on the preferred basis is one potential driver if they'd monster therapy.
We'll provide a more comprehensive commercial update in August.
In terms of clinical update we previously announced that as an additional cost savings measure and in light of the FDA clearance in migraine prevention received in March 2020.
Made it difficult decision to terminate the premium to study.
While we are terminating early we have collected a significant amount of data from this study prior to the termination which were in the process of analyzing.
Note that while the original enrollment target in the study was 340 to 360 patients we were ultimately able to enroll approximately 220 to 230 prior determination.
Even with the lower enrollment premium to is the largest randomized controlled clinical trial of the device and migraine prevention in the United States.
We look forward to seeing that data as we work to further penetrate the very large adult migraine prevention market.
There are several other investigator initiated trials with Canaccord underway. In addition to save your want in Spain in your two in Pittsburgh that we discussed previously.
These trials are exploring the use of Ghana core indications that would be considered more exploratory still.
Those studies speak to the potential broad clinical utility of noninvasive Vegas nerve stimulation and we look forward to results from ongoing studies as they become available.
In preparation for our shareholder meeting on June 12, 2020, I wanted to recap recent changes to our board of directors.
We announced at the end of March that our chairman carry Cox would be stepping down from the board effective April 1st 2020.
And that directors nickel lucci, and gentlest would be stepping down prior to the annual meeting.
Kerry Nick and Jim provided invaluable guidance to the company during a critical time and its evolution and I want to personally thank them for their service.
[noise] carry with succeeded as chairman by our current independent Board member Michael a T.
We also announced the appointments of John Gandolfo, Thomas patent and Peter Cuneo effective April two 2020.
John Thomas Peter are all proven organizational leaders with diverse medical device industry in turnaround experience that will serve us very well as we continue to execute on our more streamlined commercial plan I look forward to their contributions.
On the topic of our shareholder meeting among other things we are asking shareholders to give the board authority to implement a reverse split at sometime in the future yeah, and only if it becomes advisable to preserve our NASDAQ listing or to improve the liquidity or common stock.
<unk> NASDAQ is temporarily tolling the minimum bid price rules for maintaining a listening until June thirtyth 2020, we cannot be assured that we will be able to maintain at one dollar bid into the future.
At this point I'm going to turn the call over to Brian for review of our financials and other guidance right.
<unk>.
Thanks, Dan.
The quarter ended March 30, Onest 2020 electric core reported net sales of $734000 compared to 675000 in the fourth quarter of 2019 and within the guidance range of 700000 to $750000 that we provided in our April 17th update.
As Dan indicated the increase in revenue compared to fourth quarter of 2019.
Lets continued growth in sales within the D.A. and United Kingdom.
Hey, Mark the therapy shipped to the V.A. Indio de increased 31% sequentially 1084 in the first quarter 2020, 829 in the fourth quarter of 2019.
Revenue from the D.A.M.B.L.D. increased 20% sequentially. The 454000 in the first quarter of 2020 from 378000 in the fourth quarter 2019.
The discrepancy in growth rate between month payback therapy, and revenue was largely due to the launch of a 93 day offering at a lower average sales price per paid month a therapy.
Eight months of therapy shipped outside the U.S. increased 5% sequentially to 1008 in the first quarter 2020, 961 in the fourth quarter 2019.
Revenue from outside the U.S. decrease sequentially could $277000 in the first quarter 2020.
294000 in the fourth quarter 2019.
The discrepancy in growth rate between paid monthly therapy, and revenue was driven by the timing of revenue recognition and currency exchange fluctuation.
Total operating expenses for the first quarter of 2020, well, probably 8.4 million down approximately 42% compared to 1.5 million in the comparable period in 2019.
S.G. and <unk> expenses declined approximately 40% to 6.6 million in the first quarter 2020 from approximately 11 million for the comparable period in 2019, primarily driven by a decrease in sales and marketing expenses consistent with the cost reduction plan that we first implemented.
In June 2019.
R&D expenses decreased by 1.9 billion.
86% to 1.5 million in the first quarter 2020 versus a year ago period.
This reduction is consistent with the company strategy it significantly reducing <unk> near term investment in research and development.
During the first quarter 2020 accompany recorded a restructuring and severance related charge of $365000 connection with the transition to it you Chief Medical Officer.
GAAP net loss from operations for the first quarter of 2020 was $8 million, that's compared to a GAAP net loss of 13.9 million in the first quarter of 2019.
Adjusted EBITDA from operations for the first quarter of 2020 was a loss of 6.4 million that's compared to the adjusted EBITDA net loss from operations of 13.4 million for the same period in 2019.
The company defined adjusted EBITDA from operations as GAAP net loss from operations, excluding income tax expense stock compensation expense restructuring and other severance related charges legal fees associated with stockholders litigation and total other income and expense.
A reconciliation of GAAP net loss from operations had non-GAAP adjusted EBITDA from operations has been provided in the financial statement tables included in our press release this out yeah.
Cash and cash equivalents in marketable securities at March 31st 2020 totaled approximately $15.6 million, that's compared to approximately $24.1 million at December 31st 2019.
Subsequent to the ended the first quarter accompany rate $5 million through the partial draw down of its stock purchase agreement that Lincoln Park capital and fail to stop because certain affiliates and existing shareholders or the company, including some members of the company's board of directors.
The company also received gross proceeds of $1.2 million from that sell New Jersey State operating losses, and 1.4 million from the federal Paycheck Protection program.
Regarding the PPP.
We note that official guidance and interpretations of the requirements of the program have been limited had been changing over time.
Despite our good great believed that we probably satisfied all eligibility requirements, whether paycheck protection program loan.
There has been increasing scrutiny of public companies that we cede loans and there can be no assurance that we will not become subject to regulatory or other scrutiny and our request for repayment of some or all of them all.
Net cash used for the quarter ended March 31st 2020 was approximately $8.4 million down from $9.1 million for the fourth quarter 2019.
The first quarter 2020 included use of cash of approximately 1.7 billion were previously committed purchases of inventory.
The company expects it to average.
Quarterly cash burn to be lower for the balance of 2020, because it does not have any future material inventory purchase obligation.
In the company is taking steps to further reduce operating expenses.
Specific to the second quarter.
We anticipate that revenue will be an excess of $700000 and that operating cash burn will be between 5 million and $6 million.
The company's expected cash requirements for 2020 and beyond are based on the commercialization success of its products and its ability to reduce operating expenses.
There are significant risks and uncertainty as to what the ability to achieve these operating results, including as a result at the potential adverse impact on its business from the Colgate 19 pandemic.
These risks and uncertainties the company may need to reduce its activity significantly more than its current operating plan and cash flow projections assume in order to fund its operations beyond the first quarter of 2021.
And now I'll turn the call back over to Dan.
Thank you, Brian we're pleased with our performance during the first quarter and I believe we set the stage to continue to drive long term growth.
And while the ongoing cobot 19 pandemic has made it difficult to forecast the trajectory of our business for the remainder this year.
Key trends remain positive and we continue to take actions that are consistent with our ultimate goal of making our noninvasive Vegas nerve stimulation technology Canaccord.
Well go to the broadest possible patient population.
At this point, we'll ask the operator to open the line for questions and I want to note.
Dr. Peter starts is available with us our chief Medical Officer.
Thank you all.
Thank you.
This time will not be conducting a question answer session.
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One moment, please while we poll for questions.
Thank you.
First question is from line of Ryan Zimmerman with BTG. Please proceed with your question.
Thank you thanks for taking the questions Chris.
Yup.
So the migraine prevention indication can quicker than I think most expects it certainly we expected.
I'm just wondering if you can give us some color Dan in terms of what you're seeing since that's come about you know how providers are.
Taking advantage of that indication relative to historically and kind of what we should expect as a result of that.
Yeah.
Thanks for the question, Ryan and we didn't spend much time.
On the earnings call on that point.
[noise].
There's always been a cohort of prescribers.
That while they're enthusiastic about gamma core we're waiting for.
So the migraine prevention label, so that we could be a full package a full a full a headache solution.
And we were starting we've been starting to reach back out to that cohort, but of course with with covert 19, and then limitations on our Salesforce, we really haven't been able to take advantage of the expanded label just yet so it's it's given our sales guys a reason to get engaged with our existing cuts.
Summaries and most importantly, a to go back to customers, who have expressed interest in the past and and decided to wait until we had this complete solutions. So we're very upbeat about it. It's just frustrating that in the short run a with the pandemic in and Oh and physicians ability to get new patient starts.
That it's it's a little bit slower than we would like.
Yeah understood.
And then you know gross margins were up nicely. This quarter 100 to talk about kind of was was that related to some of the revenue recognition internationally was that as result of purchasing all your inventory I'm just wondering if any kind of parse out what drove that and what the durability of your gross margin, but these.
Levels are relative to what you were kind of you know where you're kind of that and wait 19. Thank you [laughter] yeah. So.
Very sharp [laughter] too.
Pick up on that a part of it is the aggressive expense reductions that that Brian and and Microloan. Our operations executives have engaged in a really beginning in the summer of 2019 and various initiatives that are coming together.
Part of it is [noise].
Is increasing volumes being able to spread.
Fixed expenses.
Over a larger revenue base and our expense reduction initiatives are all in place, but we still have a lot of room on the overhead absorption number and so you're going to <unk>, you're going to see a gross margins continue to expand.
Just with the arithmetic of higher volumes over the same fixed expense [noise].
Okay got it and then.
Yeah. That's it does it for me I'll hop back in queue and optimize that's true that's playing question here.
That's right.
As a reminder to ask a question today press Star one.
The next question comes from the line of this small imposed ramakanth with H.C. Wainwright. Please proceed with your question.
Thank you. This is our came from that's even right.
Hi, RK.
Good afternoon, Diane Bryantt hope or if you're doing well.
If your questions from me.
The first being on the on the paid months and <unk> and the growth in the paid months to 1000 agents who are from it 29 he was quota.
How how much of these are new subscribers. There's is a you know well folks who who kind of due to the scripts.
So.
[laughter] RK, it's exactly the right question to ask we've we have not a historically been breaking out.
New prescriptions from refill prescriptions and you know we're going to now the where.
Establish our information systems will look at doing that and future.
For the time being we're not a we're not breaking out with that detail.
Okay. That's fun. So a couple of questions on how the V is operating well be not.
Being a federal operation and does not have to deal with every state then.
They do uniqueness of each state's regulations, how what is what are you hearing in terms of how that opening up then facilities to treat patients.
That's close part a and the part B of that question is closed the tele health working out dipping the via Neurologists and then and then.
[noise] patients I'm, just trying to understand no oh, you the whole difficulties that well this revision to work that there would that patients.
So you're you're absolutely right RK.
Each V.A. campus is is making their own decisions based on.
The.
Census of virus patience.
In there I see use and what's going on in their local communities.
We've had around the country.
Several of the VA hospitals, our nurse are now starting to schedule.
Life meetings with our sales professionals. So that's it that's very good time.
And in several of the the ace in certain parts of the country are starting to see patience and a in headache clinic again.
You know that said.
Our virtual implementation of gamma core therapy has been very very very very well received.
You're probably aware, but tele health has been a technology initiated within the V.A. system for several years now and it's really accelerated over the last eight weeks.
Because of the pandemic and and many of our hospital customers have really embraced the notion that.
Hey, neurologists can.
Can do a tele health consult with the patient.
And they can prescribe Ghana, canaccord therapy, and we can ship.
The therapy directly to the patient and train and in service the patient in their home that patient does not have to come into the facility at all.
[noise] that's in contrast with.
With other.
Second and third level therapies.
That are injections that has to be delivered by health care professionals and so we've been able to move up in the continuum of care by virtue of the fact that we can completely leverage the tele health platform and to be a system is so excited about.
Very good since you know you are a big student did device market.
I'm just trying to understand how.
The.
This MBS therapy is being considered because obviously you will be lost some leverage you.
During the last 68 reach but at the same time just is not a device it's not Logan procedure, where there is a pent up demand once things open up what does this is a there's a lot I think it's a lots of the script or were you know how do you see it when things come back.
Do you see you know.
Good upsurge in demand or you know I just said, it's not like a like a placebo. So how should we think about you know on if there was a pent up demand.
Oh, good work through the system.
Yes, so it's a complicated and constantly evolving situation.
Before we understood the pandemic.
We were very excited about.
Our plans for growth in the United Kingdom based on the nice guidance and getting solid reimbursement for National Health service and we were very excited about scaling a our operations in the United States, calling on the FSS entities that.
Bundles and video de facilities.
I'm and since the pandemic I think we are [noise] relieves a that our business is flat you know so many other businesses have had been dramatically reduced but our business has has stayed flat and so I'm increasingly optimistic that were.
Gonna be able to return to that a solid.
20% plus sequential growth.
As the V.A. system in the United States returns to normal now who knows when that is.
No. That's that's the base case on top of that has as Ryan mentioned the migraine prevention label came ahead of our expectations and we do believe that there is significant pent up demand from a cohort of prescribers a that are excited about.
Now being able to use gamma core therapy for both acute and preventative treatment and the notion that gamma cord therapy.
Treats you know for a very important indications prevention and treatment of cluster headache, and prevention and treatment of migraine headache is a is an important.
Sort of Swiss Army knife in the armamentarium for the headaches specialists. So I do think there's pent up demand as our sales executives can get out and start to detail the expanded indication.
Unfortunately, we we really don't know when we'll be able to to hit the ground on that.
Okay I might for my last question I'm trying to expand on your since Army night or.
Yeah. So how are you.
No I'm working with the F.D.A. on that you application and trying to get into there.
Hmm to treating government in patients what sort of conversations all your hobby.
Do they will issue doing actually bought it I know on the U.S.
And any color at all it'd be helpful. Thank you. Thank you for taking on Yeah of course and thank you for the question. Yeah. As you know a day you a process is relatively new to many of us.
We've had a ongoing correspondence communication with the agency a they've asked questions we've answered the questions.
But we really don't I can't speculate on the timing of Oh that clear and Sungard, we speculate on on whether or not what else can only be cleared or tonight.
That said.
The most important issue is not so much the way as it is demonstrating clinical efficacy.
And in the peer reviewed publication a in Neuromodulation talking about some clinical experience with patients that are benefiting from the therapy I'm getting these two investigator initiated trials up and running save your one and savior too in conversations with.
With other investigators in other parts of that in other parts of the country about how to deploy the therapy or either in a formal study or in a a in sort of an anecdotal use it's all very very exciting right now.
Thank you Dan Good luck.
Thank you okay.
Thank you.
As a reminder to ask questions you May press star one.
Yeah.
Thing. Our next question comes from Dave Berkeley with JMP. Please proceed with your question.
Thanks, sorry, guys I got on a little late.
I guess the one quick one a you know with Dipper prevention a label.
And your minus what the protocol is I I recall thinking that.
[laughter] pieces were using it.
You know potentially much more frequently and a in a from your studies I can't recall the exact protocol, but.
Can you talk about sort of what do you think how how people use it with that labeling indication and.
Should that not mean that your volume or you know the number of times people would need treatment would accelerate.
At Peter do you want to address that question, let me add to take a stab at that.
So the device itself comes with up to 30 devices built into it and you know with it clearly that we can use to 24.
I'm not worried you know I anticipate that you know with the cluster prevention, it's six doses up to a I'm sorry, it's.
Its its three doses twice a day well will be part of the prevention and with that the migraine.
It's two doses I believe it's twice a day.
And we don't think that's the device I decided device was built to.
Accommodate both at preventive indication and the acute indications I don't foresee a problem with us running out of doses on a daily dose per patient.
I think that is in fact, one of the grade advantages of our device.
And if it but [noise].
This a their prevention you know starts to take hold in the accounts that you're selling into.
I mean.
Would you expect that.
I guess that you're you're.
Average.
[noise] patient would be using it more frequently.
Maybe then they currently are for just prevention.
Yeah. So I think no yeah, it's just kind of setting us back to step you know one of the things that it's really an advantage for us.
Is that we are an acute device that also offers a preventive therapy within one device and the second advantage that's happening right now and I think Dan mentioned. This is that this device can be prescribed versus tele health you know all of the other things that we do as health care providers not all but many of.
The other things that we do like health care providers are injections or a nerve blocks or infusions, which require a face to face as yet I think the fact that we got a preventive indication for migraine. We are also serving the needs as an acute indication oh for each of the patients.
In conjunction with the patient we can decrease that Colgate exposure with it Tele health. There's it I think all of those things are kind of.
Pulled together and Dan Swiss Army knife that makes this had more usable therapy. So I personally am optimistic about that time will tell.
The obvious challenges are you know our sales team can't get into it see the patients.
As much as we would like.
But isn't compared to everybody else leased we have a tele health approach to this.
Thank you for that and good luck and congrats.
Yeah. Thank you very much.
Thank you.
As a reminder to ask a question you made press star one.
Thank you.
At this time, we have no additional questions I'll turn the floor back to Dan Goldberger for additional remarks.
Thank you operator, and we greatly appreciate.
Everybody's kind.
Pension and support and will that you'd like to report in a few months on our second quarter progress.
The out there by.
Thank you. This will conclude today's conference you may disconnect. Your lines at this time, we thank you for your participation.